ChartSmarter Friday Game Plan 10/16/15

Markets recorded a fine session Thursday with the Nasdaq jumping 1.8% and the S&P 500 by 1.5% in good volume to boot. Indexes were higher moderately to begin the day and almost went back to UNCH around lunchtime which must have had many thinking here we go lower, but as they like to do they confounded the most and sprinted higher. Gains were broad with 9 of the 10 major S&P groups higher by 1%. The Nasdaq is higher by .7% for the week heading into Friday and possibly will have its 3rd consecutive weekly gain in a row, its first such feat since late February. The S&P 500 is looking at its own 3 week winning streak and both can CLOSE at the top of their weekly ranges if they CLOSE where the finished today. Healthcare shined Thursday with the IBB higher by 4.4%, and the XLV by 2.2% recording a nice bullish engulfing candle in the process. Financials, energy and utilities were firm as well. A welcome sign in tech is the recent reemergence of the semiconductor group which was a very powerful leader months ago only to fall on hard times as of late. Sure the sector has seen merger activity not to long ago with AVGO buying BRCM and INTC buying ALTR but we have had some more recent rumblings with FCS hiring GS and ADI and MXIM looking to join forces. The SMH is now just below its 200 day SMA and it recorded a doji candle Thursday, which indicates indecision in the current trend. That being said looking at the longer picture, the right side of a cup base is under construction which began with the bearish engulfing candle at the round 60 handle on 6/1. Notice the spinning tops on 5/28-29, the 2 days before the bearish engulfing candle which did indicate exhaustion.